Commerce Sec. Mineta Remarks to APEC CEO Summit

U.S. Secretary of Commerce Norman Mineta
urged business leaders at the Asia-Pacific Economic
Cooperation (APEC) CEO Summit in Brunei November 14 to help
develop public-private sector partnerships focused on
"expanding the circle of digital opportunity for the peoples
of Asia and the Pacific."

Following is the text of
Mineta's remarks, as prepared for delivery:

(begin
text)

Remarks by

The Honorable Norman Y. Mineta,
Secretary

United States Department of Commerce

to the
APEC CEO Summit

Brunei

November 14, 2000

(as prepared
for delivery)

Good afternoon. Thank you for that generous
welcome. And thank you very, very much for this opportunity
to address such a distinguished gathering of business
leaders. I am impressed with the talent, energy, and
influence I see in this room. And I am well aware that to
the extent the economies of APEC are prospering, the leaders
in this room and the companies you represent are a large
part of the reason.

As some of you know, I am attending my
first APEC meeting, and I've had a wonderful time this week
working with my ministerial counterparts to strengthen the
ties of friendship, commerce, and mutual interest that bind
together the nations and economies of this large and dynamic
region. As the first Asian American to represent my country
in this capacity, I am excited by the opportunities I see
here to improve trans-Pacific relations and build prosperity
through the APEC framework.

Today I've been asked to talk
about the subject of Digital Inclusion and the importance of
expanding the circle of digital opportunity for the peoples
of Asia and the Pacific.

In the United States, when we
talk about Digital Inclusion, we chiefly mean our efforts to
bridge the gap between individuals or groups -- ethnic
minorities, the elderly, people with disabilities, those who
live in rural areas, and so forth -- who are in danger of
being excluded from the Information Age economy.

In APEC,
the term Digital Inclusion has a wider application. In
addition to individual people, it also refers to the
importance of making computer technology available across
individual economies, so that all APEC members, advanced and
developing alike, can reap the benefit of globalization and
the New Economy.

And here also, when we talk about the
importance of fostering digital equality, we're referring to
the capability of businesses -- especially small and
medium-sized enterprises -- to employ technological skills
and resources they need to complete and more fully
participate in the global economy.

So Digital Inclusion
not only advances the good of society, but the bottom line
interests of business.

Alternatively, failure to address
the problem of digital equality could have grim implications
for individual companies. Because if we are to believe
business leaders like Intel Corporation's Andy Grove, in
five years a company will either be an Internet company --
or it won't be in business at all. That should give all of
us pause for thought.

Whether in the US or in APEC,
however, it's clear that the tremendous changes being
wrought by information technology in all areas of activity,
from government to business, from education to
entertainment, require a sustained commitment to the goal of
Digital Inclusion, however broadly or narrowly defined. As
government and business leaders, this is an obligation that
we all share.

How do we achieve Digital Inclusion? First,
by building the physical infrastructure. Second, by
developing the human capabilities necessary to take
advantage of information technologies. Progress on both of
these fronts requires government and the private sector
acting independently and in partnership with each
other.

It's clear that infrastructure is a high priority
need in the Asia-Pacific region and a huge impediment to
access. For example, the teledensity rate for the
Asia-Pacific -- the number of telephone lines per 100 people
-- is about 7 percent. The comparable density for Canada and
the United States is more than 60 percent.

Imagine if the
APEC economies enjoyed that level of infrastructure. Think
about what that would mean in terms of market potential for
your companies.

The promise and the stark reality of
infrastructure development here in the Asia-Pacific make
progress on this issue a matter of particular concern to all
of us. Because you can't talk about access to the
information highway when you have no highway.

In terms of
infrastructure, government's role is clear -- to create a
legal and regulatory environment that encourages private
investment. More than anything, this means making sure that
markets are open and competitive. Let me illustrate this
point with a story.

Today, November 14, is the birthday of
Robert Fulton, one of my country's great inventors. Nearly
two centuries ago, in 1807, he amazed New Yorkers by
building a new type of ship powered by steam and sailing it
up the Hudson River to Albany.

Now most American children
learn about Fulton's invention in grade school. But I
mention him not because of his considerable accomplishment,
but for another reason.

For after his successful trip,
Fulton asked for and received a monopoly on steamships from
the federal government. As you might have expected, the
decision unleashed a storm of controversy. The case was
argued in the legal system all the way to the U.S. Supreme
Court. Fortunately for America, the Court ruled against
Fulton, thus opening the gates to competition. The ensuing
rivalry made steamboats bigger, faster, and cheaper,
sparking the great era of canal-building in the United
States and fueling an economic boom.

That boom would never
have been possible, and consumers would not have benefited,
if pro-competitive principles had not ultimately been upheld
by government.

The example underscores how vital it is to
have an open and competitive business environment.

In the
area of infrastructure, the heaviest burden still belongs to
business. Only the private sector possesses the capital
resources, the technical knowledge, and the sense of
innovation and bottom-line interest that are essential to
developing the quality fiber optic networks and other
systems that form the backbone of the digital
economy.

Government and business also need to work in
partnership. One of the most instructive examples of
successful public-private collaboration in the U.S. is
reflected in our commitment to make our schools and
libraries internet-ready. Six years ago, only 35 percent of
America's public schools were wired; today school
connectivity exceeds 85 percent! You can't be much more
successful than that.

The second element in addressing
Digital Inclusion is developing human resources. In this
area, government has traditionally been the major provider
of education and training. And we expect the public sector
to continue to play the major role in preparing a skilled
labor force for the IT-intensive jobs of the 21st
century.

Increasingly, though, the private sector, often
in collaboration with non-profit groups and educational
institutions, has assumed responsibility for developing high
tech skills for business workforces, in selected industries
and communities. I'm sure that most if not all of the
companies represented in this room offer various kinds of
worker training programs.

In the U.S., we have found that
government and business are joining forces to enhance access
to computer technology and the internet for specific groups
who are in danger of being excluded from the Digital
Revolution. In the United States, these partnerships are
central to our efforts to achieve digital equality.
Private-public collaboration has resulted in the
establishment of a computer training center for the elderly
in neighboring San Francisco. And hundreds of other
partnerships are being pursued in communities all across
America.

Now what does this all mean?

It means that the
public and private sectors each has our special and joint
roles to play in achieving the goal of Digital Inclusion. We
in government will work with the other APEC economies to
create a regulatory and legal environment that creates
opportunities for business.

It's up to you, the business
community, to seize those opportunities and make the
investments that will put in place the infrastructure for
the digital economy.

And we must continue to work together
on partnerships that maximize our respective strengths and
responsibilities.

So today I would like to challenge
you.

Join us in this important undertaking to achieve
Digital Inclusion.

Develop the partnerships that help us
understand the needs of the future.

Partnerships that help
provide computers and training for every citizen and
potential enterprises.

Partnerships that encourage
investment and innovation.

Partnerships that won't stifle
competition but will stimulate it.

And together we will
make Digital Inclusion the centerpiece of a global digital
economy.

Thank you.

(end text)

(Distributed by the
Office of International Information Programs, U.S.
Department of State. Web site:
http://usinfo.state.gov)

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